If she's lived there for awhile, her mortgage might be quite a bit lower than the rent you could garner, so while a win-win is nice, doing so at the expense of hundreds per month is not so nice. 

I am concerned that after having eight different guys live in that house over the last six year, she may uncover a lot of little things I will have to fix constantly..

We know this game: shriek loud enough in hopes of getting money without actually having a case.In doing research in response to their demand letter, we uncovered a criminal background for one of the tenants that was not disclosed on application and did not come up in the original Texas criminal check. 

Nice areas, and not so nice areas. 

You can interview people who have crazy stories about fraud, easements and mechanics liens that were uncovered after-the-fact.

@Logan GarnettSounds like you are working with one of the big banks, or a not so nice mortgage lender.

You may uncover additional discrepancies. 

Listen more than you talk when you get them on the line and try to uncover the real motivation then provide solutions for them.

Being under contract I am doing due diligence and have an opportunity to submit the Request for Repairs asking for the seller to give on some of the larger health and safety things I'm finding need to be done before I move into the house after I conducted an inspection and uncovered lots of baggage associated with an insurance claim for a fire at the property.My questions: - Does anyone have experience negotiating at this point in a seller's market when bigger ticket health and safety items have come back on the inspection report?

Then that's a great deal no matter how you look at it (get a thorough inspection to uncover any gotchas).